Debt-like trust instruments
Complete this label to report debt-like trust instruments (Subdivision 276-J).
Total deductions claimed for returns paid
If the trustee has issued debt-like instruments to which Subdivision 276-J of the ITAA 1997 applies, those instruments are treated as debt interests (as defined in the ITAA 1997) issued by the CCIV sub-fund trust. Distributions on the debt-like instruments are treated as returns that the CCIV sub-fund trust pays or provides on a debt interest and you may be entitled to claim a deduction for distributions paid to holders of the instrument. Take these deductions into account in determining the trust components of characters relating to assessable income.
You can't claim a deduction for a distribution to the extent it relates to exempt income or NANE income of the CCIV sub-fund trust.
Write the amount of deductions claimed for distributions paid to holders of debt-like instruments issued by the CCIV sub-fund trust.
Division 6C amounts
Complete the following items to report Division 6C amounts.
Main category of eligible investment business
Select the main category of eligible investment business from the category list.
See section 102M of the ITAA 1936 for the meaning of eligible investment business.
Choose the most appropriate category from the list in section 102M.
Total amount of eligible investment business income
Write the total amount of eligible investment business income.
Application of the safe harbour rules
Consider these 3 questions to apply the safe harbour rules:
Question 1
Was the CCIV sub-fund a public unit trust?
The definition of public unit trust in section 102P has been amended for income years starting on or after 1 July 2016. A trust is not a public unit trust merely because 20% or more of the interests in the trust are held by complying superannuation entities or tax-exempt entities that are entitled to a refund of franking credits. From income years starting on or after 1 July 2016, some AMITs including attribution CCIV sub-fund trusts, are no longer public unit trusts.
The following 2 safe harbour questions need to be considered
- if the CCIV sub-fund trust meets the definition of public unit trust in section 102P – in considering whether the CCIV sub-fund trust is not a public trading trust
- if the CCIV sub-fund trust does not meet the definition of public unit trust in section 102P – in considering whether the CCIV sub-fund trust meets the MIT criteria to not be a trading trust.
If the CCIV sub-fund is not a public unit trust as defined in section 102P, the trustee still needs to consider the safe harbour questions.
These questions are relevant to Managed Investment Trust (MIT) criteria (even where the trust is not a public trading trust).
Question 2
Did the trust rely on the rental safe harbour rule in subsection 102MB(2) of the ITAA 1936?
If the CCIV sub-fund trust relied on this safe harbour answer Yes. Otherwise answer No.
Subsection 102MB(2) provides a 25% safe harbour allowance for non-rental, non-trading income from investments in land. This allowance should be considered on a CCIV sub-fund basis.
Question 3
Did the trust rely on the 2% non-eligible investment business safe harbour in section 102MC of the ITAA 1936?
If the CCIV sub-fund trust relied on this safe harbour answer Yes. Otherwise answer No.
If you answered Yes, select the percentage of income from activities other than an eligible investment business:
- 0% to 0.50%
- over 0.50% up to 1.00%
- over 1.00% up to 1.50%
- over 1.50% up to 2.00%.
Section 102MC provides a 2% safe harbour allowance at the whole of trust level for non-trading income to reduce the scope for inadvertent minor breaches of the Division 6C eligible investment business rules. This allowance should be considered on a CCIV sub-fund basis.
Continue to: Assessable, exempt and NANE income, tax offsets and losses information
Return to: Instructions to complete the attribution CCIV sub-fund tax return 2025